Wales seems like a pretty poorly written piece, as is, in both the London Sourcebook and Shadows of Europe. To me it reeks of Mary Sue-but all I have to back that up is my personal instincts-and preferences. So don't let that damper your enthusiasm.
QUOTE (Tias @ Nov 20 2011, 12:24 AM)

My own theory is that it is probably heavily influenced by druids (ley lines are powerful in Wales too, right?),
I'd say that they are Druids, however that their brand of Druidism differs from that explored in the various London pieces. A little wilder, and less "stuffy."
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and of course the shadow of Celedyr.
Transys Neuronet is now merged with NeoNet right? So obviously some research and development stuff-usually presented as one of Celedyr's primary domains of interest. I'd say that beyond the traditional security concerns in this area, wild magic would be a serious concern.
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But then, I don't know how much direct interest he takes in the government there.
Well whatever suits your campaign, and tells the best story for your group. The setting is a jumping off point. Use it like a cheap trick, discarding what you don't like and modifying what suits your interests.
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The player suggested that Wales could be a contested theory between TNN and the UK, to lend credence to his background that his elf emigrated to New York because he was sick of the political tension in his birth country.
It's definitely with in the realm of the possible. And you can manipulate that in a variety of ways-making it a threesome. Tensions between Tír na nÓg and the United Kingdoms plus perhaps some Welsh independence movements, corporate players and maybe even a wild magic/naturalist movement.
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Does my players suggestion seem valid, is it a contested territory?
If you're having fun with it, then run with it.